Full flight: Demand for air travel has increased as the global economy has grown

The Aircraft, Engine and Parts Manufacturing industry in Canada has expanded for most of the five years to 2019, despite volatile profitability. Industry operators manufacture aircraft, aircraft engines and related components, structures and parts. In particular, the Canadian industry is a leader in manufacturing business aircraft, commercial planes with less than 150 seats, civil helicopters, regional and small engines and various aerospace components. As the global economy has grown, led by emerging market growth, demand for air travel has increased. Despite the recent slowdown, the global economy is anticipated to continue growing, increasing air travel and demand for industry products...read more.

Industry Statistics & Market Size
Revenue
$22bn
Annual Growth 14-19
1.5%
Forecast Growth 19-24
Profit
Employment
48,701
Businesses
420

Industry Threats & Opportunities

  • Demand for business aircraft is anticipated to slowly climb in light of economic growth
  • While global economic growth initially drove revenue growth, performance has slowed
  • Airlines are forecast to expand their aircraft fleets to meet rising demand
  • Industry Report - Industry Investment Chapter

    The Aircraft, Engine and Parts Manufacturing industry in Canada exhibits a moderate level of capital intensity. In 2019, the industry is expected to spend $0.16 on capital for every $1.00 spent on labour, up from $0.13 in 2014. While industry players use large and advanced manufacturing facilities, they also hire highly skilled and relatively well-paid workers, which keeps capital intensity dampened. Aircraft, such as commercial planes, are built in massive hangar-like factories and take a long time to go through the entire production line. Advanced and often specialized equipment and tools are used to put the planes together. Eng...purchase to read more.

    Additional Insights for the Aircraft, Engine & Parts Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aircraft, Engine & Parts Manufacturing Industry are

  • Ability to manage external contracts
  • Access to highly skilled workforce
  • Ability to attract foreign customers
  • IBISWorld analysts also discuss how external factors such as Total value of world trade and Canadian effective exchange rate index in the Aircraft, Engine & Parts Manufacturing industry impact industry performance..

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    What's in this report

    What is the Aircraft, Engine & Parts Manufacturing Industry?

    Industry operators provide one or more of the following, including the manufacture of complete aircraft; the manufacture of aircraft engines, propulsion units and other related equipment or parts; the development and creation of aircraft prototypes; aircraft conversions (i.e. major modification to systems); and complete aircraft overhaul and rebuilding (i.e. periodic restoration of aircraft to original design specifications).

    Industry Products
  • Completed aircraft
  • Aircraft engines and engine parts
  • Helicopters and parts
  • Other components
  • Industry Activities
  • Manufacture complete aircraft
  • Manufacture aircraft components, parts and subassemblies
  • Manufacture aircraft engines
  • Manufacture aircraft engine components, parts and subassemblies
  • Modify aircraft, aircraft parts or engines
  • Restore and overhaul aircraft, aircraft parts or engines
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total value of world trade
  • Canadian effective exchange rate index
  • Government expenditure and investment
  • Per capita disposable income

  • Current Performance
  • Foreign demand drives growth
  • Recent turbulence
  • Other trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Global economic growth propels demand
  • Profit and other trends
  • Table: Aircraft, Engine & Parts Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aircraft, Engine & Parts Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Heavy Engineering Construction in Canada
  • Tire Manufacturing in Canada
  • Iron & Steel Manufacturing in Canada
  • Aluminum Manufacturing in Canada

  • Key Selling Industries
  • Aircraft Maintenance, Repair & Overhaul in Canada
  • Charter Flights in Canada
  • Heavy Equipment Rental in Canada
  • International Airlines in Canada
  • Mining In Canada
  • Scheduled Air Transportation in Canada

  • Products & Services
  • Completed aircraft
  • Other components
  • Aircraft engines and engine parts
  • Helicopters and parts
  • Chart: Aircraft, Engine & Parts Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
  • Health of downstream industries and economic growth
  • Military funding
  • Exports
  • Exchange rates
  • Aircraft life cycle
  • Fuel prices
  • Interest rates

  • Major Markets
  • Exports
  • Commercial aerospace
  • Defence
  • Chart: Major Market Segmentation for the Aircraft, Engine & Parts Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Aircraft, Engine & Parts Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aircraft, Engine & Parts Manufacturing Industry

  • Industry Globalization
    Bombardier Inc., United Technologies Corporation, Textron Inc., The Boeing Company,
  • Table: Bombardier Inc. - financial performance
  • Table: United Technologies Corporation - financial performance
  • Table: Textron Inc. - financial performance
  • Table: The Boeing Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aircraft, Engine & Parts Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aircraft, Engine & Parts Manufacturing Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Government funding for defence (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Avionics
  • Aircraft electronic systems that include radar and communication, control and display systems.
  • Original Equipment Manufacturer (Oem)
  • Companies that do primary aircraft design and development work, and are responsible for the final assembly of the aircraft, which is then sold under their brand.
  • Tier 1 Supplier
  • Sub-system integrators, with only OEMs above them in the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aircraft, Engine & Parts Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Aircraft, Engine & Parts Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aircraft, Engine & Parts Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aircraft, Engine & Parts Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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